Hypocritical CSR during a Pandemic: O’Reilly Automotive, Inc.

In the retail sector, the behavior of managers and their employees at the store level is particularly relevant to customers. This relevance, I submit, outweighs the wider benefit of a company’s corporate social responsibility (CSR) program if the behavior contradicts either the CSR wording or actual programs. Besides the obvious bad odor of hypocrisy that vitiates CSR claims, a company’s direct effects on its customers (and employees) have implications in terms of responsibility. I submit that these implications are more important than those of CSR programs that are geared to societal problems because they are less central to a business. In short, having a CSR program does not make up for irresponsible policies or conduct toward customers (and employees). O’Reilly’s Automotive serves as a good illustration.
The company’s second CSR goal in 2018 was to enhance “the health and wellbeing of communities engaging with” the company.”[1] The company claimed that CSR is “embedded in” its business philosophy such that the operations are not to “become an obstacle or a burden in the way of people’s and the environment’s wellbeing.”[2] Regarding health, the company’s CSR program consisted of providing “nutritional boosting” by producing and distributing health and hygiene products to “enhance the wellbeing of its customers along with the various communities” with which the company has engaged.[3] To the extent that such products are sold to customers, the CSR program is more like an additional product line than from any sense of responsibility to help reduce societal ills. In other words, the health CSR program was rather self-serving.

In spite of the signage, two out of the three customers in the store were not wearing masks or maintaining physical distance from other people. No employee confronted the two customers. 

In just two years, the company’s store-level operations had negligently become an obstacle or hindrance to the health of employees and customers even as the company continued to tout its CSR health goal. Even though stores had signs indicating that masks were required due to the coronavirus pandemic, managers and/or employees in at least one store were refusing to enforce that policy when customers came in without wearing masks. Such customers could even ignore the barriers keeping customers at a distance from the check-out counter. One employee told me that some customers were even mistaking the barriers as an invitation to go behind the counter! I was just as astonished, however, at the employees’ impotence when it came to enforcing the mask requirement.
Perhaps just as the company’s CSR program was self-serving (i.e., selling an unrelated product line), so too was the company’s overriding dictum that the company’s mask policy should not be permitted to get in the way of customers buying products. That is, I suspect that the implicit priority was on the value of marginal revenue over the health of customers and employees. This business calculus may not be surprising, yet the refusal to enforce a salient (by signage) company policy is. To claim that a requirement that is not to be enforced is nonetheless a requirement involves not only cognitive problems, but also sheer weakness. Management includes both making policies and enforcing them. The decision not to enforce one, such as in telling employees not to accost customers who feel entitled to ignore the signage of a requirement, can thus be regarded as ineffectual management even if the goal is to maximize revenue.

[1] Matthew Harvey, “Corporate Social Responsibility of O Reilly Automotive, Inc.,” Essay 48 October 17, 2018 (accessed November 18, 2020).

[2] Ibid.

[3] Ibid.